Iran’s state broadcaster said Wednesday that Tehran had received an initial draft of a 14-point Memorandum of Understanding (MOU) framework with the United States, one that would reopen the Strait of Hormuz, lift the US naval blockade on Iranian ports, and pull US forces back from Iranian territory.
💡 DMK Insight
This MOU could shift oil prices dramatically, and here’s why: If the US lifts its naval blockade and reduces military presence, we could see a surge in Iranian oil exports. The Strait of Hormuz is a critical chokepoint for global oil supply, and any easing of tensions here could lead to a significant drop in oil prices, impacting not just crude but also related assets like energy stocks and ETFs. Traders should keep an eye on WTI and Brent futures for immediate reactions. But there’s a flip side—if negotiations falter or if geopolitical tensions escalate again, we could see a spike in volatility. Watch for key technical levels around $70 for WTI and $75 for Brent; a break below these could signal a bearish trend. In the coming weeks, monitor any updates from both the US and Iran, as these will be crucial in shaping market sentiment and trading strategies.
📮 Takeaway
Watch for oil prices around $70 for WTI and $75 for Brent; any news on the MOU could trigger significant volatility.






